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Warby Parker ’ s Washington DC store ; the brand has more than 200 physical locations .
A similar journey has played out in reverse at DNVB Glossier . After avoiding third-party retailers for nearly 10 years , the beauty brand finally launched in Sephora in January , in an effort to increase its reach and opportunities for growth . Even small premium DTC brands like wine producers have set up urban tasting rooms to assist omnichannel conversion rates within an overarching DTC strategy .
The future of DTC , particularly for smaller and premium providers , seems to lie in leveraging technology to unlock omnichannel experiences across channels . For example , in-store kiosks can be a convenient way to cut wait times for customer service , or provide access to a broader range of products through endless-aisle solutions . Virtual and augmented reality solutions can enhance the customer experience to a level that small brands may not be able to achieve without a large distribution network . Even the humble QR code ( which had a resurgence tracking consumer check-ins during Covid- 19 lockdowns ) can be used to enhance distribution and engagement . Of course , there are a variety of marketing technologies behind those scenes that are helping brands scale quickly through data , personalization and experimentation as well .
The DTC retail model is not dead . Instead , it has evolved to incorporate additional channels , technologies and even partnerships with retailers to overcome its inherent weakness when it comes to market penetration . Used well , technology-enabled retail services can harness the benefits of DTC , and focusing on the customer experience may help strengthen trust in lesser-known DTC brands .
At the same time , challenges around building relationships with consumers , particularly around product experiences , remain . This is where our future research is pointed , but for now the key message is not to write off DTC just yet . There are still elements of the model that can be beneficial , either in isolation or as part of an omnichannel suite . So while we aren ’ t likely to see another Warby Parker , don ’ t be surprised if more DTC brands emerge and continue to find success in new ways .
Samantha McKee is a PhD Candidate at Swinburne University of Technology studying the evolution of the DTC business model .
Dr Jason Pallant is a Senior Lecturer at RMIT University .
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“ The evolving direct‐to‐consumer retail model : A review and research agenda ,” co-authored by Samantha McKee , Professor Sean Sands , Dr Jason Pallant , and Dr Justin Cohen in the International Journal of Consumer Studies .
September 2023 www . insideretail . us 35